Dana Sets Course for Mideast Upstream Growth
Dana Gas PJSC, the first regional private-sector gas company in the Middle East, on Tuesday announced that its agreed C$1.15 billion (US$950 million) offer to acquire all the outstanding shares of Centurion Energy International Inc. of Calgary has been accepted by Centurion Energy shareholders and the acquisition has been completed as planned.
The successful acquisition of Centurion Energy provides Abu Dhabi-listed Dana Gas with a strong strategic platform from which to grow its upstream activities in natural gas exploration and production throughout the Middle East Region.
Centurion Energy has announced that, at a special meeting of its securityholders held on January 8, 2007 to approve the Plan of Arrangement, 43,867,337 votes representing 94% of the securities voted were voted in favor of the Plan of Arrangement with Dana Gas, and that it had also received formal approval from the Court of Queen's Bench of Alberta in Canada. Centurion Energy shares will be de-listed from the Toronto Stock Exchange and London AIM on January 11, 2007. Dana Gas announced it had entered into an agreement to acquire Centurion Energy on November 12, 2006.
Centurion Energy, which will become a wholly owned subsidiary and the upstream division of Dana Gas, is currently engaged in exploration and production operations from 10 development leases and four exploration licenses in Egypt, Tunisia, and offshore West Africa. With offices in Calgary, London, and Cairo, Centurion ended 2006 with estimated proven and probable gas reserves of almost 100 million boe, production of over 31,000 boe/day, expected revenues of approximately US$165 million and expected operating cash flows of approximately US$85 million.
The acquisition also provides Dana Gas with access to a team of over 150 highly skilled multi-disciplinary management and technical staff, in a network of global offices, and with a proven track record in geological and geophysical drilling, production, exploration and operations in the Middle East's gas business.
"We are very pleased with the smooth completion of the Centurion Energy transaction process and welcome its management and staff to the Dana Gas group. This acquisition gives Dana Gas an important strategic entry into the region's upstream natural gas sector and provides it with a unique growth platform based on a solid base of existing assets. Very importantly, it also provides a strong team of experienced exploration and production professionals. We look forward to working with the whole of the Centurion Energy team to maximize the potential of its existing assets, and to expand further through new upstream projects throughout the Gulf and the wider Middle East," said Hamid Dhiya Jafar, Executive Chairman of Dana Gas.
The transaction achieves Dana Gas's aim of accelerating its growth strategy through the acquisition of exploration and production (E&P) operations in the Middle East and North Africa region. Centurion Energy's assets complement Dana Gas's existing gas chain activities and expertise in transportation, processing and marketing of natural gas and represent the entry by Dana Gas into the region's upstream gas sector. The new acquisition will also expand the Company's presence in North Africa and, in particular, Egypt, where the past decade has seen the country's natural gas and LNG operations attract the attention and focus of many international oil and gas companies. With proven reserves of 70 trillion cubic feet and growing, Egypt is already among the top ten LNG producers in the world.
In a recent announcement, Egypt's Petroleum Ministry stated that, in the past five years, gross foreign direct investment ("FDI") in oil, gas and petrochemicals amounted to US$9.5 billion. The ministry added that the target for the next five years is to secure FDI of US$25 billion in petroleum projects. By 2010, annual exports, mainly of gas and petrochemicals, are set to reach US$10 billion.
Dana Gas has announced plans to expand across the Middle East and North Africa (MENA) region into all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals.
DanaGas (PJSC) is the first regional private-sector natural gas company in the Arabian Gulf Region, established in late 2005 with over 300 founder shareholders from across the Gulf Cooperation Council (GCC) region, and some 425,000 investors from over 100 nationalities worldwide who submitted applications of over US$78 billion over ten days in the company's regional IPO in late 2005. Headquartered in Sharjah in the UAE and with offices opening throughout the region and its shares listed on the Abu Dhabi Stock Market (ADSM), Dana Gas with its subsidiaries and affiliates hold substantial assets in the transportation by pipeline, processing, and marketing of natural gas within the UAE, and aims to play a major role in the rapidly-growing natural gas business throughout the Middle East North Africa (MENA) Region across the entire gas value chain. In addition to its current projects, Dana Gas will be expanding into all elements of the natural gas value-chain, including upstream exploration and production; through the midstream transmission and distribution of gas including LNG trading; and downstream into gas-related industries and petrochemicals.
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